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R-10-12-16-10D1 - 12/16/2010RESOLUTION NO. R -10-12-16-10D1 WHEREAS, Chapter 791 of the Texas Government Code, V.T.C.A., authorizes local governments and agencies of the state to enter into agreements with one another to perform governmental functions and services, and WHEREAS, the City of Round Rock wishes to enter into an Interlocal Agreement with the City of Georgetown, Chisholm Trail Special Utility District, and Brushy Creek Municipal Utility District regarding review of Brazos River Authority's system water rates, Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That the Mayor is hereby authorized and directed to execute on behalf of the City an Interlocal Agreement with the City of Georgetown, Chisholm Trail Special Utility District, and Brushy Creek Municipal Utility District, a copy of same being attached hereto as Exhibit "A" and incorporated herein for all purposes. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended. RESOLVED this 16th day of December, 2010. )11 ALAN MCGRAW, Mayor City of Round Rock, Texas ATTEST: SARA L. WHITE, City Secretary O:\wdox\SCClnts\0112\ 1005\MUNICIPAL\00209241. DOC/nnc INTERLOCAL AGREEMENT REGARDING REVIEW OF SYSTEM WATER RATES THE STATE OF TEXAS COUNTY OF WILLIAMSON EXHIBIT „A„ KNOW ALL BY THESE PRESENTS: THIS INTERLOCAL AGREEMENT REGARDING REVIEW OF SYSTEM WATER RATES ("Agreement") is entered into between the City of Round Rock, Texas, a Texas home -rule city ("Round Rock"); the City of Georgetown, Texas, a Texas home -rule city ("Georgetown"), Chisholm Trail Special Utility District, a Texas conservation and reclamation District ("CTSUD"), and Brushy Creek Municipal Utility District, a Texas conservation and reclamation district ("BCMUD"). In this Agreement, Round Rock, Georgetown, CTSUD and BCMUD are sometimes individually referred to as "a Party" and collectively referred to as "the Parties". Recitals WHEREAS, each of the Parties have entered into water supply agreements ("System Water Availability Agreements") with the Brazos River Authority .( "BRA") setting forth the terms and conditions pursuant to which BRA has agreed to make available to each of the Parties a supply of water from the BRA "System", as such term is defined in each of the System Water Availability Agreements; WHEREAS, BRA has implemented a System -wide pricing methodology for the availability of water under the System Water Availability Agreements, and each of the Parties pays a "System Rate" to BRA for the availability of a water supply, regardless of whether, and how much, water is diverted by each of the Parties; WHEREAS, the Board of Directors has increased the System Rate each year since the Parties entered into their respective System Water Availability Agreements with BRA, and each of the Customers desires to ensure that the System Rates charged by BRA are just and reasonable; and WHEREAS, the Parties desire to retain a consultant to review the System Rate in order to review the methodology used for calculation of the System Rate and to confirm that the System Rate is just and reasonable, and consistent with standard industry ratemaking principles. NOW, THEREFORE, in consideration of the foregoing premises and the mutual promises and agreements of the Parties contained in this Agreement, the Parties agree as follows: I. EVALUATION OF SYSTEM RATE 1.01 Rate Consultant. Within thirty (30) days of approval of this Agreement by all of the Parties, Georgetown will enter into the agreement with HDR, Inc. ("HDR") which is attached as Exhibit "A" ("HDR Proposal"), for the evaluation of the System Rate (the "Rate Evaluation Study"). The scope of the HDR Proposal shall not be amended by Georgetown or any other Party without the prior written consent of all Parties to this Agreement. 1.02 Cost of Services. Georgetown will advance and pay the cost of the Rate Evaluation Study, subject to its right to reimbursement by each of the other Parties for a portion of such cost based on the cost allocation percentages set forth on the attached Exhibit "B", which are based on percentage of System water available to that Party under the System Water Availability Agreements (the "Cost Allocation Percentages"). 1.03 Effect of Partial Execution. This Agreement will become effective and binding on a Party when executed by all Parties. If less than all of the Parties have executed this Agreement as of , 2010, then this Agreement shall be null and void for all purposes, regardless of how many Parties have executed this Agreement as of said date. 1.04 Reimbursement of Costs. Upon Georgetown's approval of each invoice for the Rate Evaluation Study, Georgetown will transmit a copy of the invoice to the other Parties. Each of the other Parties agree to pay its prorata portion of each invoice, which will be determined by multiplying its respective Cost Allocation Percentage by the total amount of the approved invoice, to Georgetown within 30 days after delivery of the invoice (the "Due Date"). Each invoice submitted by Georgetown for reimbursement will reference the HDR Proposal and clearly describe the work done in connection with the Alternate Design Work, and will not seek reimbursement or payment for any work other than the Rate Evaluation Study. Any amounts due to Georgetown which are not paid within 30 days of delivery will accrue interest at the rate of 7% per annum from the Due Date until paid. 1.05 Work Product. Upon receipt of a request from another Party, Georgetown agrees to promptly make available to the requesting Party copies of any work product produced by HDR in connection with the Rate Evaluation Study. The Party requesting a copy of such information shall pay all reasonable costs incurred by Georgetown in preparing and furnishing the copies. II. GENERAL PROVISIONS 2.01 Authority. This Agreement is made in part under the authority conferred in Chapter 791, Texas Government Code. 2.02 Severability. The provisions of this Agreement are severable and, if any provision of this Agreement is held to be invalid for any reason by a court or agency of competent jurisdiction, the remainder of this Agreement will not be affected and this Agreement will be construed as if the invalid portion had never been contained herein. 2.03 Payments from Current Revenues. Any payments required to be made by a Party under this Agreement will be paid from current revenues or other funds lawfully available to the Party for such purpose. 2 2.04 Cooperation. The Parties agree to cooperate at all times in good faith to effectuate the purposes and intent of this Agreement. 2.05 Entire Agreement. This Agreement contains the entire agreement of the Parties regarding the sharing of costs for the Rate Evaluation Study and supersedes all prior or contemporaneous understandings or representations, whether oral or written, regarding the subject matter. The Parties confirm that this Agreement relates only to the Rate Evaluation Study. 2.06 Amendments. Any amendment of this Agreement must be in writing and will be effective if signed by the authorized representatives of the Parties. 2.07 Applicable Law; Venue. This Agreement will be construed in accordance with Texas law. Venue for any action arising hereunder will be in Williamson County, Texas. 2.08 Notices. Any notices given under this Agreement will be effective if (i) forwarded to a Party by hand -delivery; (ii) transmitted to a Party by confirmed telecopy; or (iii) deposited with the U.S. Postal Service, postage prepaid, certified, to the address of the Party indicated below: GEORGETOWN: ROUND ROCK: 3 Georgetown, Texas Attn: Jim Briggs Telephone: (512) Facsimile: (512) Email: 221 East Main Round Rock, Texas 78664 Attn: City Manager Telephone: (512) 218-5410 Facsimile:(512) 218-7097 Email: swhite@round-rock.tx.us BCMUD: CTSUD: 16318 Great Oaks Drive Round Rock, Texas 78681 Attn: Tom Clark Telephone: (512) 255-7871 Facsimile: (512) 255-0332 Email: t.clark@bcmud.org 851 FM 970 Florence, Texas 76527 Attn: Jennifer McKnight Telephone: (254)793-3103 Facsimile: (254)793-3100 Email: jennifermcknight@ctsud.org 2.09 Exhibits. The following exhibits are attached to this Agreement and incorporated herein by reference: Exhibit A - Exhibit B - HDR Proposal Cost Allocation Percentages 2.10 Counterparts; Effect of Partial Execution. This Agreement may be executed simultaneously in multiple counterparts, each of which will be deemed an original, but all of which will constitute the same instrument. 2.11 Authority. Each Party represents and warrants that it has the full right, power and authority to execute this Agreement. 4 ATTEST: CITY OF ROUND ROCK: By: Sara White, City Secretary Alan McGraw Date: 5 ATTEST: CITY OF GEORGETOWN: By: Printed Name: r e (� , Czwvve.c. Title: Na. Date: 6 1t) 2.9- aotc7 BRUSHY CREEK MUNICIPAL UTILITY DISTRICT: By: Printed Name: Title: Date: CHISHOLM TRAIL SPECIAL UTILITY DISTRICT: By: Printed Name: Title: Date: 8 EXHIBIT "A" HDR PROPOSAL EXHIBIT "B" COST ALL OCATION PERCENTAGES Georgetown: 43.325% Round Rock: 30.925% BCMUD: 6.825% CTSUD: 18.925% ROUND ROCK, TEXAS PURPOSE. PASSION. PROSPERITY City Council Agenda Summary Sheet Agenda Item No. 10D1. Agenda Caption: Consider a resolution authorizing the Mayor to execute an Interlocal Agreement Regarding Review of System Water Rates with the City of Georgetown, Chisholm Trail Special Utility District, and Brushy Creek Municipal Utility District. Meeting Date: December 16, 2010 Department: Infrastructure Development and Construction Management Staff Person making presentation: Michael Thane, P.E. Director of Infrastructure Management. Item Summary: The City of Round Rock, City of Georgetown, Brushy Creek MUD, and Chisholm Trail SUD (Parties) have all entered into water supply agreements with the Brazos River Authority (BRA). The BRA has implemented a System -wide pricing methodology for the availability of water. The BRA has increased the System Rate each year since the Parties entered into their respective water supply agreements with the BRA, and the Parties desire to ensure that the System Rate charged by the BRA is just and reasonable. The Parties desire to retain HDR, Inc. to review the methodology used for calculation of the System Rate and to confirm that the System Rate is consistent with standard industry ratemaking principles. Upon execution of this agreement by all Parties, the City of Georgetown will enter into an agreement HDR, Inc. for the evaluation of the System Rate. The cost for the services will be allocated to the Parties based on their ownership capacity in the Williamson County Regional Raw Water System (WCRRWS), which includes the intake at Lake Stillhouse Hollow and the raw water line from Lake Stillhouse Hollow to Lake Georgetown. Round Rock's percentage in the WCRRWS is 30.925%. Strategic Plan Relevance: Goal 27.0 "Ensure there is an adequate, affordable and safe water supply." Cost: $12,370 (30.925% of $40,000 contract with HDR) Source of Funds: Date of Public Hearing (if required): N/A Recommended Action: Approval EXECUTED DOCUMENT FOLLOWS INTERLOCAL AGREEMENT REGARDING REVIEW OF SYSTEM WATER RATES THE STATE OF TEXAS KNOW ALL BY THESE PRESENTS: COUNTY OF WILLIAMSON THIS INTERLOCAL AGREEMENT REGARDING REVIEW OF SYSTEM WATER RATES ("Agreement") is entered into between the City of Round Rock, Texas, a Texas home -rule city ("Round Rock"); the City of Georgetown, Texas, a Texas home -rule city ("Georgetown"), Chisholm Trail Special Utility District, a Texas conservation and reclamation District ("CTSUD"), and Brushy Creek Municipal Utility District, a Texas conservation and reclamation district ("BCMUD"). In this Agreement, Round Rock, Georgetown, CTSUD and BCMUD are sometimes individually referred to as "a Party" and collectively referred to as "the Parties". Recitals WHEREAS, each of the Parties have entered into water supply agreements ("System Water Availability Agreements") with the Brazos River Authority ( "BRA") setting forth the terms and conditions pursuant to which BRA has agreed to make available to each of the Parties a supply of water from the BRA "System", as such term is defined in each of the System Water Availability Agreements; WHEREAS, BRA has implemented a System -wide pricing methodology for the availability of water under the System Water Availability Agreements, and each of the Parties pays a "System Rate" to BRA for the availability of a water supply, regardless of whether, and how much, water is diverted by each of the Parties; WHEREAS, the Board of Directors has increased the System Rate each year since the Parties entered into their respective System Water Availability Agreements with BRA, and each of the Customers desires to ensure that the System Rates charged by BRA are just and reasonable; and WHEREAS, the Parties desire to retain a consultant to review the System Rate in order to review the methodology used for calculation of the System Rate and to confirm that the System Rate is just and reasonable, and consistent with standard industry ratemaking principles. NOW, THEREFORE, in consideration of the foregoing premises and the mutual promises and agreements of the Parties contained in this Agreement, the Parties agree as follows: I. EVALUATION OF SYSTEM RATE 1.01 Rate Consultant. Within thirty (30) days of approval of this Agreement by all of the Parties, Georgetown will enter into the agreement with HDR, Inc. ("HDR") which is attached foto 1 as Exhibit "A" ("HDR Proposal"), for the evaluation of the System Rate (the "Rate Evaluation Study"). The scope of the HDR Proposal shall not be amended by Georgetown or any other Party without the prior written consent of all Parties to this Agreement. 1.02 Cost of Services. Georgetown will advance and pay the cost of the Rate Evaluation Study, subject to its right to reimbursement by each of the other Parties for a portion of such cost based on the cost allocation percentages set forth on the attached Exhibit "B", which are based on percentage of System water available to that Party under the System Water Availability Agreements (the "Cost Allocation Percentages"). 1.03 Effect of Partial Execution. This Agreement will become effective and binding on a Party when executed by all Parties. If less than all of the Parties have executed this Agreement as of , 2010, then this Agreement shall be null and void for all purposes, regardless of how many Parties have executed this Agreement as of said date. 1.04 Reimbursement of Costs. Upon Georgetown's approval of each invoice for the Rate Evaluation Study, Georgetown will transmit a copy of the invoice to the other Parties. Each of the other Parties agree to pay its prorata portion of each invoice, which will be determined by multiplying its respective Cost Allocation Percentage by the total amount of the approved invoice, to Georgetown within 30 days after delivery of the invoice (the "Due Date"). Each invoice submitted by Georgetown for reimbursement will reference the HDR Proposal and clearly describe the work done in connection with the Alternate Design Work, and will not seek reimbursement or payment for any work other than the Rate Evaluation Study. Any amounts due to Georgetown which are not paid within 30 days of delivery will accrue interest at the rate of 7% per annum from the Due Date until paid. 1.05 Work Product. Upon receipt of a request from another Party, Georgetown agrees to promptly make available to the requesting Party copies of any work product produced by HDR in connection with the Rate Evaluation Study. The Party requesting a copy of such information shall pay all reasonable costs incurred by Georgetown in preparing and furnishing the copies. II. GENERAL PROVISIONS 2.01 Authority. This Agreement is made in part under the authority conferred in Chapter 791, Texas Government Code. 2.02 Severability. The provisions of this Agreement are severable and, if any provision of this Agreement is held to be invalid for any reason by a court or agency of competent jurisdiction, the remainder of this Agreement will not be affected and this Agreement will be construed as if the invalid portion had never been contained herein. 2.03 Payments from Current Revenues. Any payments required to be made by a Party under this Agreement will be paid from current revenues or other funds lawfully available to the Party for such purpose. 2 2.04 Cooperation. The Parties agree to cooperate at all times in good faith to effectuate the purposes and intent of this Agreement. 2.05 Entire Agreement. This Agreement contains the entire agreement of the Parties regarding the sharing of costs for the Rate Evaluation Study and supersedes all prior or contemporaneous understandings or representations, whether oral or written, regarding the subject matter. The Parties confirm that this Agreement relates only to the Rate Evaluation Study. 2.06 Amendments. Any amendment of this Agreement must be in writing and will be effective if signed by the authorized representatives of the Parties. 2.07 Applicable Law; Venue. This Agreement will be construed in accordance with Texas law. Venue for any action arising hereunder will be in Williamson County, Texas. 2.08 Notices. Any notices given under this Agreement will be effective if (i) forwarded to a Party by hand -delivery; (ii) transmitted to a Party by confirmed telecopy; or (iii) deposited with the U.S. Postal Service, postage prepaid, certified, to the address of the Party indicated below: GEORGETOWN: ROUND ROCK: 3 Georgetown, Texas Attn: Jim Briggs Telephone: (512) 9.30 -'Jss9 Facsimile: (512) q3t--3tPaa. Email: 221 East Main Round Rock, Texas 78664 Attn: City Manager Telephone: (512) 218-5410 Facsimile:(512) 218-7097 Email: swhite@round-rock.tx.us BCMUD: CTSUD: 16318 Great Oaks Drive Round Rock, Texas 78681 Attn: Tom-£fark Ce t- • 1163(t--. Telephone: (512) 255-7871 Facsimile: (512) 255-0332 Email: t.clark(bcmud.org 851 FM 970 Florence, Texas 76527 Attn: Jennifer McKnight Telephone: (254)793-3103 Facsimile: (254)793-3100 Email: jennifermcknight@ctsud.org 2.09 Exhibits. The following exhibits are attached to this Agreement and incorporated herein by reference: Exhibit A - HDR Proposal Exhibit B - Cost Allocation Percentages 2.10 Counterparts; Effect of Partial Execution. This Agreement may be executed simultaneously in multiple counterparts, each of which will be deemed an original, but all of which will constitute the same instrument. 2.11 Authority. Each Party represents and warrants that it has the full right, power and authority to execute this Agreement. 4 ATTEST: CITY OF ROUND ROCK: fi/144/1,-. 14iZett. Sara White, City Secretary By: Alan McGraw Mitti-y- Date: (2 • lb • tU 5 ATTEST: CITY OF G ORGETOWN: By: Printed Name: "6tf r Cs - CrO.- -� Title: M y p Date: / 201 0 6 BRUSHY CREEK MUNICIPAL UTILITY DISTRICT: By: Printe Title: ame. o GRA -I L - 3b44 es de � Date: �- ' 16 7 CHISHOLM TRAIL SPECI4L UTILITY DISTRICT: By: ,' Pried N Title: • S Date: 8 /01/4///o EXHIBIT "A" HDR PROPOSAL Project Name: Review of BRA Raw Water System Rate Engineering Firm Name: HDR Engineering, Inc. Task Order No. HDR -10-04 Date: 10/5/10 City's Designated Representative — Jim Briggs, ACM City of Georgetown P.O. Box 409 Georgetown, Texas 78627 General Description of Services or Project: Detailed Review and Coordination/Negotiation Support Concerning BRA Raw Water System Rate City Provided Information or Work: The City shall provide the following services or perform the following work (describe): City of Georgetown Project No: General Ledger Account Number: The City of Georgetown (City) will request various materials from the Brazos River Authority (BRA) for review by HDR, including material related to the BRA Long range Plan, associated spreadsheet and backup information, any accompanying reports, memoes, or other support information that has not yet been previously provided. The City will also take the lead in arranging, managing, and coordinating an Interlocal Agreement among any other participating entities, as well as arranging coordination with BRA. The City of Georgetown will serve as the contract manager on this effort, and HDR will bill Georgetown for all efforts incurred within its scope, and Georgeotwn will be responsible for the pro -rating HDR's billing to the other participating entities and for collections of billing. The City of Georgetown shall be responsible for coordinating and developing consensus positions among the participants and providing unified direction to HDR as to how to proceed as the coordination/neogtiation efforts progress. Any documents or information related to the Work/Services provided by the City to the Professional, including, without limitation, engineering studies, maps, reports, filed data, notes, plans, diagrams, sketches, or maps (the "Information") is and shall remain the property of the City, and Professional shall have no ownership or other interest in same. The Professional shall deliver to the City, if requested, a written itemized receipt for the Information, and shall be responsible for its safe keeping and shall return it to the City, upon request, in as good condition as when received, normal wear and tear excepted. Scope of Work: (describe in detail using additional or separate sheets if necessary): Master Services Agreement — Task Order #HDR -10-001 Version 8.28.2009 Page 1 DATA GATHERING HDR has already performed an initial review of the BRA Long Range Financial Plan and related spreadsheet and has developed a series of questions as to assumptions, methodology, and policies underlygin the Plan. As a part of the subsequent efforts outlined in this scope, HDR will participate in a City of Georgetown/BRA coordination meeting where BRA will present and explain their Plan and answer questions. With information arising from this meeting and/or subsequent data transmittals, HDR may revise its comments on the Plan. There may also be additional information reuirements that become identified subsequent to the BRA coordination meeting that will be coordinated through the City of Georgetown. RATE MODEL REVIEW It should be understood that developing utility rates is both "an art and a science." There are industry -accepted methodologies (AWWA-M1) and broad statutory provisions (TCEQ Chapter 291 rules) regarding wholesale water rates. Even within these guidelines and regulatory provisions, there is still room for latitude. Utilities are allowed some flexibility in how they organize, fund themselves, define rate classes and implement certain rate designs. Specific policies may also govern some aspects of rate design that is unique to each utility. Rates are typically evaluated against certain regulatory criteria with general legal considerations of being fair, equitable, and non-discriminatory. In other words, rates should not vary to far from a reasonable cost -of -service basis. Additional regulatory latitude is also given in cost of service and equity considerations for "system rates" and rates agreed to under contract. BRA's Plan is based on a series of assumtions, methodologies, and policies. These underlying factors may or may not represent good planning or the alternative perspectives of its wholesale customers. HDR will provide its assessment of the BRA's Long Range Financial Plan and underlying spreadsheet model with respct to its compliance with industry standards, Texas regulatory guidelines, and good planning. HDR will identify, in its opinion, viable parts of the Plan, portions of the Plan with issues, possible rate mitigation measures, and negotiation strategies that would help address any shortcomings of the Plan. If requested by the City of Georgetown, HDR, in coordination with the participating entities, will develop an alternative "most likely" future scenario for the system rate that could serve as the basis for further coordination and negotiation. There could be a number of rounds of revisions to the forecasting model, as alternative scenarios are tested or negotiations iterate towards agreed-upon methods or assumed values. COORDINATION A more noticeable amount of coordination effort will be required in this second phase of the rate review/negotiation effort. Five coordination meetings with BRA are budgeted to provide for the presentation of the Plan and Q/A session, a subsuquent meeting with BRA for presenting and discussing the participating entities comments on the Plan, a follow-up meeting with BRA to discuss their response, and two later negotiation meetings to reach consensus on Plan changes. Five coordination meetings are also budgeted for joint meetings of the staff of participating entities to brief them on issues and status. Eight coordination meeting are budgeted for briefings of the governing bodies in Executive Session, one for each of the particpating entities at the outset of this Master Services Agreement — Task Order #HDR -10-001 Version 8.28.2009 Page 2 effort and a second round of briefings of the governing bodies as any negotiations are nearing conclusion. No effort is currently scope for any TCEQ coordination or action. Additional coordination meetings can be provided on an additional per diem basis at the hourly rates shown in Exhibit B. LEVEL OF EFFORT AND BUDGET HDR proposes to conduct the second phase review and negotiation of the BRA system rate and model for a fee of $40,000, proposed on a per diem basis. This budgeting includes the development of summary information needed to coordinate with the participating entities and BRA. SCHEDULE Upon Notice to Proceed, HDR would begin developing a series of questions about the Plan, based on our prior initial review. The City of Georgetown will then arrange a meeting with BRA staff for a presentation of the Plan and Q&A. HDR will then refine its comments on the Plan and meeting with the participating entities to coordinate how to proceed. It is expected that this second phase could take up to five or six months to reach a conclusion as to agreed-upon changes to the BRA Plan and related policies and any significant matters remaining unsettled. Statement Regarding Non -Collusion; Prohibited Financial Interests; Prohibited Political Influences: (Per Article 36 in the Master Service Agreement): Professional hereby represents and warrants to City that Professional shall not perform any work or services for a third party that is potentially or actually related to, connected to, a part of, or integral to the work or services that it has performed is or is performing for the City under this Task Order. Professional shall have the affirmative duty to bring all such conflicts or potential conflicts to the attention of the City, and Professional agrees that the City shall be the sole judge as to whether a conflict or potential conflict of interest with work for private parties or Developer work exists. If in the judgment of the City such a conflict or potential conflict between City work and Developer work exists, then Professional agrees to terminate all work under the affected Task Order(s) immediately and that it shall not be eligible for payment for such services. Compensation: (Pick one) ® Time and Materials with Amount Not to Exceed: - Services to be provided at rates shown on Exhibit B in an amount not to exceed $40,000 DOLLARS and ZERO CENTS. ❑ Lump Sum: Services to be provided at rates shown on Exhibit B in an amount not to exceed $ DOLLARS and ZERO CENTS. Master Services Agreement — Task Order #HDR -10-001 Version 8.28.2009 Page 3 APPROVED: CITY OF GEORGETOWN By: Name: Title: Address: Phone: Fax: E -Mail: Date: Jim Briggs Assistant City Manager POBox 409 Georgetown, TX 78627 512.930.3651 512.930.3659 jhb@georgetowntx.org Master Services Agreement — Task Order #HDR -10-001 Version 8.28.2009 PROFESSIONAL Firm Name:HDR Engineering, Inc. By: Name: Title: Address: Phone: Fax: E -Mail: Date: Kelly Kaatz, P.E. Sr. Vice President 4401 Westgate Blvd. Austin, TX 78745 512.930.5134 512.912.5158 kelly.kaatz@hdrinc.com Page 4 Person -Hours A. LABOR EXPENSES Total Hours u a) U c (0 t u H Sen. Financial 7.41 U LO N O LO Ln O N M CT V1 ei M 01 l0 N O LO 'Cr CO CO M M 00 to 01 VI- V1 111 111 VI- v1 v1 O O O O O O 00 N ct O u1 0C) Cf r -I N N N G N 01 0 0 0 0 0 O t0 O gcr O 0 0 0 0 0 00 O N O U1 *Zr O r -I N N G7 it co a1 =o 0 m '`J= CT ca c � '` * 3 a) > to cco cLy -§. -3 .L Q c c c C.1 a) • O O s a a) (0 W r0 0 0 •c c c c c o c o v ;g .. a) a o 0 0 p Iz N EY U U u0 1 I I 1 1 1 1 vi N CO 'V 1.11 CO N Y Y Y Y Y Y Y ro CO CU CO CO CU Mt I- I-- I- I'- I- I- - O CO Ln o r, Ln v1 oN. 61 N N Total Labor Hours N N 00 1.11ai m CT CT N. N O • c = d a CL) x c- W CI) ' 0 C v � Q J X w 0 m J 0) 0 0 m 1- B. NON -LABOR EXPENSES v O O N O N l!1 O O N 00 e-1 N t/1 V1 1./1 V1 i/1 0 C s Cu O Ln O Ln U1 a-1 1, N O v1 v1 v1 v1 v1 h N Z- (0 rti ro o v t i -i Reproduction CUa a oZ To 0) m 2 u 2 N fA EXHIBIT "B" COST ALL OCATION PERCENTAGES Georgetown: 43.325% Round Rock: 30.925% BCMUD: 6.825% CTSUD: 18.925%